Almarai Q4 profits inch up, costs bite
Riyadh, January 17, 2012
Saudi Arabia's Almarai Co, the Gulf's biggest dairy firm by market value, reported a small rise in fourth quarter profits on Tuesday, citing the negative impact of higher raw material costs.
The dairy giant had net profit of 285.5 million riyals ($76 million) in the three months ended December 31, up 0.6 percent from 283.8 million riyals in the prior-year period, it said in a statement. Profits were down 33.5 percent over the third quarter.
Fourth quarter sales rose 16.1 percent to 2.1 billion riyals from 1.8 billion riyals a year earlier. On the year, sales stood at 7.95 billion riyals, up 14.7 percent over 2010.
Almarai also said it did not book impairments on its investment in telco Zain Saudi during the quarter. The diary firm was one of nine founding shareholders in Zain Saudi and owns a 2.5-percent stake initially valued at 350 million riyals.
"The fair value of the Zain equity investment has been significantly below cost ... Management is assessing the quantum of impairment and will recognise the impairment loss in its annual consolidated financial statements for the year ended 31 December, 2011," Almarai said.
The firm's chief financial officer told Reuters in October that it will likely take a $36 million impairment on the stake.
Last year, Almarai said it plans to invest 4 billion riyals to increase its capital by 73.9 percent and that it plans to spend 4 billion riyals in the poultry sector. It also said it plans to issue a 2.25 riyal dividend per share for 2011.
In December Almarai said it acquired Fondomonte SA, which owns and operates farms in Argentina, to secure feed for its dairy herd and poultry business. - Reuters
More Miscellaneous Stories
- Egypt food subsidy bill to total $4.3bn this year
- Entrepreneurship festival targets SMEs
- Equity firm buys into Algerian Pepsi bottler
- Mother recounts vice den ordeal in Bahrain
- More companies 'getting into CSR activities'
- Middle East grain import bills could rise
- New Emirati themed restaurant opens
- 4 UAE companies in race for agri innovation awards
- Stage set for Bahrain Animal Production Show
- Amphibious boats make global debut in Dubai
- Dubai chamber F&B group sets roadmap for 2014
- Feminisation drive costs $213m to Saudi firms
- US interiors firm opens MEA base in Dubai
- Saudi 'spends $1.6bn on energy drinks'
- Farmer is jailed for raping housemaid in Bahrain
- Bahraini mother recounts firebombs agony
- Guard foils masked ATM robbers in Bahrain
- Bahraini on Arab world's 'most powerful women' list
- Latest kitchen technology at Sharjah event
- Number of HNWIs in Africa to double by 2023
- World boxing legend to visit Bahrain
- UAE road accidents decline by 23.5pc
- Top businesswomen in Bahrain honoured
- Death penalty sought for Bahrain terrorists
- Girl, 9, dies after fall from 8th floor in Abu Dhabi
- Lebanese café brand opens Dubai outlet
- Bahrain poultry firm told to step up safety
- Customer dies in Bahrain cafe brawl
- Bahraini boys hurt while planting bombs
- Philips, Ericsson launch LED street lighting